City and County of San Francisco Department of Human Resources

1
City and County of San FranciscoDepartment of
Human Resources

• COMPREHENSIVE OVERVIEW OF LAYOFF PROCESSES AND
  PROCEDURES
• by Philip A. Ginsburg, Director of Human
  Resources
• February 2005

2
Agenda

• Introduction
• The Budget
• The Layoff Process
• Bumping
• Special Conditions
• Near Lists
• The Early Retirement Program
• Process Enhancements

3
The Budget

• General Fund deficits have been significant, and
  are projected to continue

Projected Percentage of Shortfalls
General Fund FY 2001-02 (75M)
3 FY 2002-03 (150M) 7 FY
2003-04 (300M) 13 FY 2004-05
(300M) 13 FY 2005-06 (130M)
6 FY 2006-07 (215M) 9
4
The Budget

• Other non-service options have been adopted or
  exhausted
• Exhaustion of nearly 125M of reserves
• Capital project suspensions totaling more than
  55M
• Raised majority of city fees to maximum legal
  limit
• Consolidated five departments, dozens of programs
• Proposed tax increases defeated

5
The Budget

• Few options are left but a reduction in the size
  of the citys workforce

Positions in General Funded Departments FY2001-0
2 FY2004-05 Change 17,184
15,739 -1,445
6
The Budget

• Despite measures to date, significant financial
  challenges remain

Two-year FY
2005-06 FY 2006-07 Total
_________________________________________________
________________ Shortfalls after mid-year cuts
(130M) (215M) (345M) ___________
________________________________________________

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Layoff Process
Step 1 Mayor identifies budget-related need to
reduce City services
Step 2 Department identifies necessary service
reductions
Step 3 Department identifies positions related to
service reductions
Step 4 Department identifies employee with least
departmental seniority
Step 5 Department provides notice per the MOU and
meets and confers
Step 6 DHR reviews and verifies department action
Step 7 DHR reviews employment history of the
affected employee
Step 8 DHR reviews Citywide seniority of
employees in affected class
DHR identifies vacant requisitions
DHR identifies least senior employees City-wide
Step 9
DHR determines reinstatement rights
DHR displaces least senior employee
DHR returns laid-off employee to vacant
requisition
Step 10
Affected employee remains on Holdover Roster
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Step 1 Mayor identifies budget-related need to
reduce City services

• 2003-04 Budget Instructions
• Absorb planned or mandated increases (4)
• Create contingency list equal to 5 of
  departments General Fund
• Preserve direct services to public

9
Step 2 Department identifies necessary service
reductions

• Department identifies services for reduction,
  based on a lack of funds supported by a business
  rationale

10
Step 3 Department identifies positions related
to service reductions

• Department identifies specific positions
  providing the services to be reduced
• Department obtains approval to proceed with
  layoffs from the Mayors Budget Director

11
Step 4 Department identifies employee with least
departmental seniority

• Department identifies least senior employee
• Inverse order of seniority by class and status
• Civil Service order of layoffs
• Provisional employees in the affected class
• Probationary employees in the affected class
• Permanent employees in the affected class

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Step 5 Department provides notice per MOU and
meets and confers

• Department issues notice of layoff to the
  employee
• Minimum notice period as required by MOU
• Department notifies the union as required by MOU
• Department submits documents to DHR
• Department meets and confers with union
• Impact of layoffs on staffing, workload, and
  safety
• DHR facilitation provided by Employee Relations

13
Step 6 DHR reviews and verifies department
action

• DHR Layoff Processing Team
• Reviews and verifies that department considered
• Departmental seniority
• Tie-breaking procedures
• Special conditions
• Verifies that documentation contains
• Appropriate effective layoff dates
• Appropriate notice requirements
• Employee Information Booklet and FAQs provided

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Step 7 DHR reviews employment history of the
affected employee

• Review of Employment History
• Layoff Team will evaluate the laid-off employees
  employment history
• Previous employment history and status
• Determine Citywide seniority in the affected
  classification
• Determination of holdover rights
• All laid-off permanent and probationary civil
  service employees are placed on Holdover Rosters
  in their respective classes

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Step 8 DHR reviews Citywide seniority of
employees in affected class

• DHR reviews the affected employees placement on
  the seniority roster for the affected class
• DHR reviews special conditions on requisitions of
  less senior employees in the affected class
• DHR canvasses affected employee for
  qualifications necessary to meet special condition

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Step 9 DHR determines the affected employees
return-to-duty rights

• DHR identifies vacant available requisitions in
  the affected class
• DHR identifies least senior employees in the
  affected class City-wide for displacement
• DHR identifies reinstatement rights of the
  affected employee
• DHR identifies other return-to-duty options
• Near-list placements (Temporary Civil Service)
• Intermediate class designations

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Step 10 DHR returns the affected employee to
duty, where possible

• DHR returns the affected employee to a vacant
  requisition, if one exists
• DHR displaces the least senior employee in the
  affected class, City-wide
• DHR maintains the affected employee on a holdover
  roster for five (5) years
• Continuation of City-paid health benefits
• Severance payment in lieu of holdover rights if
  provided by MOU

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How bumping occurs
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Bumping Scenario 1
Mr. Green PCS 1210 _at_ DHR Laid off due to lack
of funds
Mr. Green PCS 1209 _at_ DHR Reinstates to prior
PCS class and Dept
Ms. Blue PCS 1209 _at_ DHR Bumped as the least
senior 1209 _at_ DHR
Ms. Blue PCS 1209 Bumps the least senior 1209
Citywide
Mr. Orange TPV 1209 _at_ RET Bumped as the least
senior 1209 Citywide
Mr. Orange TPV 1209 _at_ RET No return rights and
is out of work
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Bumping Scenario 2
Ms. Red PCS 1450 _at_ AIR Laid off due to lack of
funds
Mr. Brown PCS 1450 _at_ DPH Laid off due to lack
of funds
RESCINDED
Ms. Red PCS 1450 _at_ AIR Bumps the least senior
1450 Citywide
Mr. Brown PCS 1450 _at_ DPH Second least senior
cannot bump
RESCINDED
Mr. Brown PCS 1446 _at_ DPH reinstates to prior
class dept
Ms. Purple PCS 1450 _at_ PUC Bumped as the least
senior 1450 Citywide
RESCINDED
RESCINDED
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Bumping Scenario 3
Ms. Turquoise PCS 5186 _at_ AIR Laid off due to
lack of funds
Ms. Turquoise PCS 1675 _at_ DHR Reinstated to prior
class and dept
DHR no longer uses class 1675 and has no budgeted
position
Ms. Turquoise PCS 1675 _at_ DHR Laid off due to
lack of funds
Ms. Turquoise PCS 1675 _at_ DHR Bumps the least
senior 1675 Citywide
VACANT PCS 1675 _at_ CON
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Bumping Scenario 4
Mr. Magenta PCS 2719 _at_ MTA Laid off due to lack
of funds
Mr. Magenta PCS 2718 _at_ WAR Reinstated to prior
class and dept
Mr. Gold PCS 2718 _at_ WAR Bumped as least senior
2718 _at_ WAR
Ms. Olive PCS 2718 _at_ MTA Bumped as the least
senior 2718 Citywide
Mr. Gold PCS 2718 _at_ WAR Bumps least senior 2718
Citywide
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Special Conditions

• Special qualifications or skills required for a
  specific position
• Require express approval of DHR
• Placed on a specific requisition at time of
  issuance
• Added to existing requisition through requisition
  modification process
• Public posting and union notification

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Examples of Special Conditions

• Proficiency in Spanish
• Verifiable and recent journey level experience in
  programming GIS using Java, Visual Basic, or ASP
• Possession of a California Drivers License class
  A, with an endorsement issued by the California
  DMV to operate any commercial motor vehicle that
  is any of the following (1) A double trailer,
  (2) a passenger transportation vehicle, which
  includes, but is not limited to, a bus, farm
  labor vehicle, or general public paratransit
  vehicle when designed, used, or maintained to
  carry more than 10 persons including the driver,
  or (3) a tank vehicle

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Examples of Special Conditions

• Recent verifiable experience in all the following
  areas of budget administration development of
  guidelines, preparation of background material
  for presentation to the Mayor and Budget Analyst
  of the Board of Supervisors or to senior
  management of an organization, and monitoring and
  reporting on budget variance.
• Geriatrics and rehabilitation experience
• Lift dead bodies 200 lbs

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Special Condition Review Process

• Review by DHR Client Services analysts
• Multiple factors considered
• Operational needs of the department
• Documented duties responsibilities
• Required Knowledge, Skills Abilities (KSAs)
• History of the use of the Special Condition
• Special condition is measurable or verifiable
• Availability of on-the-job training

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Special Condition Notice and Appeal Process

• Special conditions are considered classification
  actions
• Posted for seven days
• Posting notices are distributed to City
  departments and unions
• Interested parties may request additional
  information or protest the action
• Classification actions may be appealed to the
  Civil Service Commission

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Special Conditions

• Exception to the order of layoff (CSC 121.7)
• A less senior employee in a position with a
  special condition can only be bumped by a more
  senior employee who possesses the required
  special qualifications or skills
• More senior employees are canvassed by the
  Layoff Team to determine whether they meet
  specific special conditions
• Canvassing process relies on self-certification
  by employee

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Near Lists

• Appointment to a similarly related class (CSC
  121.7.3)
• One class may be near-listed to several other
  classes
• Many classes may be near-listed to the same class
• Authorized when other return-to-duty and
  reinstatement options are exhausted (CSC
  121.17.3)
• Cannot bump permanent employees (CSC 121.17.3)

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Near Lists

• Near list eligibility derivative from Holdover
  status (CSC 112.30.1(15))
• All holdovers in a near-listed class are placed
  on the near list
• Near list appointments are Temporary Civil
  Service (CSC 112.30.1(15))
• Near-listed employees remain on holdover roster
  for class from which laid off

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Near List Process

• Layoff Team identifies existing near lists
• Layoff Team identifies the need for a new near
  list analysis
• Other placement opportunities do not exist
• Requests from other sources considered
• DHR Client Services staff conduct classification
  analysis
• Review and approval by the Human Resources
  Director

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Near List Review Process

• Multiple Factors considered
• Essential duties
• Knowledge, skills and abilities
• Minimum qualifications pre- and post-appointment
  requirements
• Salary (up to 7.5 increase)

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Early Retirement Program (ERP)

• Proposition F Early Retirement Benefits
  Targeted to Mitigate Layoffs
• Voters approved the Charter Amendment in November
  2003.
• Design of the program was complex and vetted by
  stakeholders.
• Program implemented in January 2004.

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ERP Implementation Model
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Early Retirement Program (ERP)

• What is the ERP?
• Retirement enhancement that increases an eligible
  employees age and credited service for both
  qualification and benefit computation purposes by
  three (3) years, but does not apply to the
  disability or vesting benefit provisions or
  computations.

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Early Retirement Program (ERP)

• What is its Purpose?
• To encourage employees in classifications
  identified for layoffs due to cuts in City
  services or functions to take early retirement

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Early Retirement Program (ERP)

• What is its Goal?
• To minimize the effects of layoffs on employees
  alreadylaid off from these classifications by
  increasing the possibilities of return from
  holdover lists

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Early Retirement Program

• Program Parameters
• Early retirement benefits are limited to
  employees in classifications identified for
  layoffs
• Required certification by the Controller that the
  number of employees selected for early retirement
  benefits in each classification shall not exceed
  the number of employees separated due to layoffs
• ERP provides for participation by the School
  District and the Community College District

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Step 1 Identification by the Mayors Office

• During fiscal years 2003-2004 and 2004-2005 the
  Mayor identifies, subject to confirmation by the
  Controller and the Human Resources Director
• City and County services or functions that have
  been terminated or reduced during the fiscal year
  because of budget constraints, and
• The classifications of positions that have been
  eliminated in the budget for that fiscal year
  because of the termination or reduction of City
  and County services or functions (Identified
  Classifications)

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Step 2 Class Identification and Certification

• DHR defines the Identified Classifications
• DHR completes the analysis of all pending layoffs
• Any layoff that results in the complete
  separation of an employee is forwarded to the
  Controller for certification
• Controllers Certification of ERP Slots
• Confirmation that the laid-off position has been
  eliminated by the initiating Department
• Review of Annual Salary Ordinance (ASO) to ensure
  position elimination
• Certification that the number of employees
  selected for early retirement benefits in each
  classification does not exceed the number of
  employees separated due to layoffs

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Step 3 DHR Offer Analysis

• There are two ways in which an employee may be
  eligible for the Early Retirement Program
• Permanent Civil Service Position The employee
  is the most senior in an Identified Class (IC)
  where the determination has been made that an ERP
  slot is available
• Exempt/Provisional Position The employee is
  PEX, TEX or TPV and has been completely separated
  from City service as a result the deletion of the
  employees position from the ASO

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Step 3 DHR Offer Analysis (Continued)

• Permanent Civil Service positions require further
  analysis
• DHR Reviews Active Employees in the Identified
  Class
• Seniority Rosters
• Determination of Most Senior active Employee(s)
• Employees on leave to accept other position are
  not included in analysis
• Employees from SFUSD and SF Community College
  District may not be included in this analysis
  depending on program participation commitments

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Step 3 DHR Offer Analysis (Continued)

• DHR Then Reviews Individuals on the Holdover
  Roster
• Determination of individuals interest in
  returning to work for the City
• Possession of required skills
• Then Match Up Process DHR determines
• Most senior active employee in the Identified
  Class
• Eligible individual on the Holdover Roster for
  the Identified Class

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Step 4 Retirement Eligibility Certification

• Retirement Eligibility Certification
• For Permanent Civil Service Positions- The most
  senior employee(s) are forwarded by DHR to the
  Retirement System for retirement eligibility
  certification
• For Exempt and Provisional Positions-- The name
  of the Exempt and/or Provisional employee is
  submitted to the Retirement System for
  retirement eligibility certification
• Retirement Eligibility is Defined as
• Age 47 with 17 years of service credit or
• Age 57 with 7 years of service credit

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Step 5 ERP Offer Letters

• Upon receiving the Controllers final
  certification, the Human Resources Director
  extends the Official Offer Letter to the eligible
  employee.
• Employee has 30 calendar days to make a decision
  and effectively retire from City service.

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Step 6 ERP Offer is Accepted

• DHR will capture the vacant requisition created
  by the retirement.
• A Holdover will be returned to duty the day
  following the effective date of the most senior
  employees retirement.

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Step 6A ERP Offer is Declined/Expired

• Upon notification from Retirement that an offer
  has been declined or expired
• DHR will extend a secondary offer to the next
  eligible employee in the identified
  classification.
• This process continues until
• All retirement eligible employee in the class are
  exhausted, or
• The holdover roster for the class is exhausted.

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Bumping Scenario 1 ERP
Mr. Green PCS 1210 _at_ DHR Laid off due to lack
of funds
Mr. Gray PCS 1210 _at_ DHR Offered ERP And Retires
Mr. Green PCS 1209 _at_ DHR Reinstates to prior
PCS class and Dept
Ms. Blue PCS 1209 _at_ DHR Bumped as the least
senior 1209 _at_ DHR
Ms. Blue PCS 1209 _at_ RET Bumps the least senior
1209 Citywide
Mr. Orange TPV 1209 _at_ RET Bumped as the least
senior 1209 Citywide
Mr. Orange TPV 1209 _at_ RET No return rights and
is out of work
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Process Enhancements

• Internal Job Placement Committees
• SEIU and Local 21
• Representatives from DHR, Mayors Office, Union
  and union members
• Layoff Policy Advisory Group
• Advises the HR Director on policies related to
  layoff and the Early Retirement Program
• Departmental staff assigned to DHR to assist with
  layoffs
• Airport, DPH and PUC

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Process Enhancements

• Enhanced Layoff Communications Plan
• Layoff Communications Coordinator
• Layoff information hotline
• Frequently Asked Questions
• Open informational meetings with all employees
  noticed for layoff